The Difference Between Relative and Absolute Poverty

About the lecture

In this module, we will explore the difference between relative and absolute poverty. In particular, we will focus on: (i) defining absolute and relative poverty lines; (ii) what extreme poverty means globally, including how the World Bank defines absolute poverty; (iii) how exchange rates effect absolute poverty lines and how we account for this using Purchasing Power Parity; (iv) relative poverty and how this is defined within specific societies; and (v) why might we use a relative poverty line rather than an absolute poverty line.

About the lecturer

Dr Paul Segal is a Reader in Economics of Development at King's College London. He specialises in researching global poverty and inequality, the economics of natural resources, and economic history. He has published widely within these areas, including Who Are the Global Top 1%? and The Economy: Economics for a Changing World. He has also written policy articles for FT.com and has collaborated with Oxfam Mexico to undertake empirical fieldwork in Mexico City, analysing multidimensional inequalities.